Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 162 - AT - Income TaxAddition u/s 69D - Hundies v/s bills of exchange - loans/borrowing in the Hundies which were repaid in cash from undisclosed income - CIT-A held that the instruments against which the appellant had borrowed were bills of exchange and not Hundies - HELD THAT:- We note that in the case of Dexan Pharmaceuticals Pvt Ltd. (1995 (1) TMI 54 - ANDHRA PRADESH HIGH COURT) has noted that “A bill of exchange in the vernacular language is generally called as hundi. Hundies are negotiable instruments written in an oriental language. They are sometimes bills of exchange and at other times promissory notes and are subject to local usages and are unaffected by the provisions of the Indian Negotiable Instrument Act.” Thus we find that in the present case also the instrument as submitted in the paper book before us are in English language and are all bilateral and not tripartite. In the facts and circumstances of the case, as per the precedent as above, it cannot be treated as hundi. Hence, the disallowance u/s. 69D is unsustainable. Accordingly, we set aside the order of the ld.CIT(A) and decide the issue in favour of the assessee.
|